12 June 2012
I HAVE ENTERED INTO A WORKS CONTRACT AMOUNTING TO RS.100000/-, COMPLETED THE WORK AND BILLED MY AWARDER FOR THE CONTRACT AMOUNT OF RS.100000/-. BUT UNFORTUNQATELY HE PAID ME ONLY RS.90000/-. PL CLARIFY , UNDER KERALA VAT LAWS, ON WHICH AMOUNT I SHOULD PAY WORKS CONTRACT TAX? ON INVOICED AMOUNT OR PAYMENT RECEIVED AMOUNT. AGAIN, IF THE AWARDER DEDUCTED TDS ONLY ON RS.90000/-, WILL I HV TO PAY WCT ON REST RS.10000/-?
12 June 2012
Under Kerala VAT Act, it is the responsibility of the awarder to deduct tax at source from every payment made to the contractor, including the advance payments. In such case, the party paid only 90000/-and hence VAT (TDS) is to be calculated for 90,000/-. Based on the certificate the the contractor will file the return and claim exemption for Rs.90,000/-, though the act specifies as "total contract value".
CAclubindia
